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"U.S. housing has turned the corner in every way, shape, or form," says Jamie Dimon (JPM),...

"U.S. housing has turned the corner in every way, shape, or form," says Jamie Dimon (JPM), speaking at the Morgan Stanley conference. The corporate world is in great shape in terms of liquidity, and small business is kind of back to where it was, but the political environment is a "wet blanket" on the economy. On reserve releases: We don't do it to prop earnings, we're forced to do it. "I'd love to leave them up."
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Comments (16)
  • Topcat
    , contributor
    Comments (490) | Send Message
     
    Certainly the housing market is improving, and will help underwater homeowners, and banks etc holding assets. However, I think, while an improving market will of course help everyone and make it easier for people to sell and move to better job markets e.g., I don't expect ramped up price appreciation, because I think much of the current price rise in some markets is due to bulk buying for investing/renting by big corporations etc. Plus, banks are holding off putting on the market houses they have foreclosed on, until the prices rise. Thus, we have a relatively small number of available houses on the market. As prices rise, more and more houses will come on the market, as many have been waiting to sell for various reasons.
    11 Jun 2013, 02:59 PM Reply Like
  • mpjoseph
    , contributor
    Comments (2) | Send Message
     
    I do not believe it. What happens when the prop QE goes away.
    11 Jun 2013, 03:17 PM Reply Like
  • mpjoseph
    , contributor
    Comments (2) | Send Message
     
    What happens after theQE is gone. The corporations are liquid today because the CEO's are sitting on false liquidity. They know it.
    11 Jun 2013, 03:17 PM Reply Like
  • minecanary
    , contributor
    Comments (641) | Send Message
     
    What a crock. The housing market already died w/mortgage rates jumping up. The corporations are already unwinding their buy to rent programs so that driver is gone. Lumber prices are way down so there is no demand. Who is forcing them to release reserves so they can show a profit (get a bonus) even as they expect to increase write-offs?
    11 Jun 2013, 03:51 PM Reply Like
  • gtdrivr
    , contributor
    Comments (60) | Send Message
     
    WTH is false liquidity? The refi market died but housing did not. But make no mistake we are not going back to the 00's where housing and flipping was the name of the game for the US economy. It should be a slow and steady market with no bubble.

     

    There were 49,000 condo's looking for buyers in South Fl. at the peak of the crash and now less than 2000 remain and that is why Starwood is planning projects. That is supposedly South American wealth that came in. The irony now is that the Red states are booming and the Blue states are stagnant.

     

    Energy and on-shoring are the story now. Look for a long, slow, steady improvement in the US economy with the only potholes on the road ahead from Washington's total lack of leadership or ability to not muck stuff up.
    11 Jun 2013, 04:15 PM Reply Like
  • nafar
    , contributor
    Comments (236) | Send Message
     
    The liquidity is still very high in the system. With the tapering of bond buying and ultimate coming to an end, the money created would remain there for quite long time. There would be not much negative impact on the economy for sure.

     

    S&P average P/E is still low than average prevailed before recession. At that time the interest rate were also high.
    11 Jun 2013, 04:29 PM Reply Like
  • Leonard Umina
    , contributor
    Comments (18) | Send Message
     
    You are forgettting Obamacare, inflation, and the housing tax. These are going to hit 1,2,3 and the housing market will be dead for a decade. Sellers aren't going to sell for decreasing value dollars that they will be heavily taxed on robbing them of equity if they do; healthcare premiums are about to go nuclear and that's everyones first concern; and the housing tax will make it impossible to work the numbers.

     

    With inflation it's going to be easy to think things have improved until you go to the grocery store or gas pump, and don't believe the "constant dollars" crap Washington generates. As Clinton demonstrated the numbers used as measure can easily be manipulated.
    11 Jun 2013, 04:34 PM Reply Like
  • Topcat
    , contributor
    Comments (490) | Send Message
     
    Actually, health care expenses increases, and premiums, increased at a much reduced level the last two years, and initial reports of the new insurance exchange premiums show them to be lower than the market currently is, and that is with increased standard attributes that must be covered, like accepting pre-existing conditions, etc..Jury is of course out, but by Oct 1 we will know all the exchange pricing. Biggest problem is getting young people signed up, since the tax penalty is too low right now, but will ramp up. I think most are adding a catastrophic policy for young people, to get them to sign up. The single most important Obamacare accomplishment will be to keep people from going to emergency rooms, which is costing all of us, even those with company sponsored insurance. Everyone has to take personal responsibility, and not freeload on others.
    12 Jun 2013, 12:37 PM Reply Like
  • gtdrivr
    , contributor
    Comments (60) | Send Message
     
    Inflation will never be a big problem in the US as long as we live and the REASON why is Energy.

     

    ENERGY runs the US economy and always has, every recession or bad economic period was caused by a supply disruption or price spike in energy. Without going into detail the US now and for hundreds of years has more energy than we can use. Slowly we will become totally North American self sufficient and actually export a large amount of LNG. We are already exporting 3 million barrels a day of refined product.

     

    All that money we used to send overseas every year for oil is now going to stay here and be multiplied. It is a stimulus every year in hundreds of billions. The dollar will not die because of sending them overseas in ever increasing amounts like we used to.

     

    Plus the good thing about the FED's QE is that even if interest rates rise it's a wash. The treasury paying the fed, the fed sending it back to the treasury.

     

    Forget inflation and energy troubles, major transformation happening in the US economy over the next 5 years., just could use a little leadership from Washington on these issues to speed things up.
    12 Jun 2013, 02:18 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (275) | Send Message
     
    It puzzles me that housing is improving. By a number of historical comparisons, there is little support for an improvement in housing.
    1. Declining commodities: isn't housing a commodity?
    2. Employment trends: what job growth that has been reported has been in waitstaff and temporary positions.
    3. Unemployment/underempl... The share of our population that is unemployed/underemployed (U-6) continues at historical highs.
    4. Shadow inventory: Any discussion of improvement should consider the percent of homeowners underwater as well as the number of bank owned properties held off the market. Why aren't those numbers shared when discussing the housing market?
    5. Worldwide economy: The economic growth rate for China continues to shrink. Europe is well into a recession. Where/how will our economy improve without an expansion in markets?

     

    Consequently, I am puzzled with the claims of a housing resurgence.
    11 Jun 2013, 04:58 PM Reply Like
  • mcostigane
    , contributor
    Comments (44) | Send Message
     
    psssst........he's lying
    11 Jun 2013, 05:03 PM Reply Like
  • bankingqueen
    , contributor
    Comments (135) | Send Message
     
    All smoke and mirrors
    11 Jun 2013, 10:58 PM Reply Like
  • apppp
    , contributor
    Comments (382) | Send Message
     
    obfuscate (third-person singular simple present obfuscates, present participle obfuscating, simple past and past participle obfuscated)
    To make dark; overshadow
    To deliberately make more confusing in order to conceal the truth.
    Before leaving the scene, the murderer set a fire to obfuscate any evidence of his or her identity.
    (computing) To alter code while preserving its behavior but conceal its structure and intent.
    We need to obfuscate these classes before we ship the final release.
    11 Jun 2013, 08:36 PM Reply Like
  • designshoe
    , contributor
    Comments (893) | Send Message
     
    get with it. housing is now boosting the US econ.
    stay bearish at your own risk.
    foreign buyers are coming in with cash
    11 Jun 2013, 10:24 PM Reply Like
  • mcostigane
    , contributor
    Comments (44) | Send Message
     
    in the immortal words of Admiral Ackbar:

     

    "It's a Trap"
    12 Jun 2013, 02:26 PM Reply Like
  • nafar
    , contributor
    Comments (236) | Send Message
     
    Its not a trap perhaps. When banks buys treasury bills, the money supply decreases. What now happens is Fed is returning the money taken back from banks gradually. Where is the money supply increase? Another important thing the velocity of circulation is decreasing with the increase in quantity of money supply - thereby keeping the real money supply more or less the same. Had it not be so, there would be increase in inflation.
    13 Jun 2013, 10:40 AM Reply Like
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